Firms Back Out After Committing Funds At Tamil Nadu’s 2015 Global Investor Meet

Firms Back Out After Committing Funds At Tamil Nadu’s 2015 Global Investor Meet

Most of the powercompanies that signed MoUs at the 2015 Global Investors’ Meet (GIM) are not interested in investing in Tamil Nadu as they want to sign power purchase agreements (PPA) and do not want to come through the tender process. The government had signed MoUs worth 1.07 lakh crore at the GIM to increase the installed power generation capacity by 15,850MW.

“Nearly 1 lakh crore investments under energy department alone were promised at the 2015 GIM. But they want to sign PPAs so that the power tariff will be high. Tamil Nadu does not want power at high cost any longer as we have surplus power,” said Thangamani, while replying to opposition leader M K Stalin in the assembly on Thursday.

Tangedco wants all the investors to get through the tender process. “As a fall-out of severe competition in the tender process, power tariff has drastically fallen in recent years for solar projects. We are able to get new investors in solar power sector at 2.40 per unit. But through PPA, the tariff will be not less than 5 per unit. No state will be ready to woo investors at such high cost,” a senior Tangedco official told TOI. Read More…

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